Quote:
Originally Posted by mrkajz44
So if corporations are not re-investing the money they save on tax breaks, they are either:
1) Distributing more profits to individuals, generating personal income tax
2) Sitting on the cash and not using it at all
Not too many solid business models just sit on excess cash for long periods of times.
In addition, I'm not sure those articles are proving that companies are not re-investing their tax savings. All they are looking at is investment in machinery and equipment. There are plenty of other ways companies can re-invest in their company without buying machinery.
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Well 'the economy' has been drizzling ####s for nearly a decade now. Maybe that's a sign?
Somehow I feel I could never provide you with enough evidence to satiate you. This idea that tax breaks to corporations increases economic output is an ideological fantasy that hasn't produced any fruit.
For nearly 30 years, Canada and the US have been playing a game of beggar thy neighbour with nothing to show for it. There should be mountains of evidence to the contrary but instead we have record low wages, record amounts of personal debt, record provincial deficits and a sluggish economy.
By comparison, we have reams of evidence that high corporate tax rates and profound public services grow the economy.